In the principal-agent problem, the agent is:
A. a person who entrusts someone with a task.
B. a person who carries out a task on someone else's behalf.
C. a person who is in charge of a top-secret mission.
D. a person who has the same objectives as the principal.
B. a person who carries out a task on someone else's behalf.
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A future payment's present value is
A) the value in today's dollars of funds to be paid or received in the future. B) the value in today's dollars of funds to be paid or received today. C) the value in a future date's dollars of funds to be paid or received today. D) the value in a future date's dollars of funds to be paid or received in the future.
Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?
a. housing b. healthcare c. life expectancy d. All of the above.
If banks faced a 100 percent reserve requirement, a $10,000 addition to banking reserves would increase the money supply by:
a. $100
b. $1,000.
c. $10,000.
d. $100,000.
If you know that the price where MC=MR at a point that is between ATC and AVC, you
A. know the firm is breaking even. B. know the firm is making a profit. C. know the firm is making a loss. D. need to know whether the firm is a price taker or a price maker to determine whether they are making a profit.